Nidhi Company
Registration
Willing to reserve funds amongst members? Then Nidhi Company is best for you.
Get registered with us Online. Price starting from INR 32499/- only.
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What is Nidhi Company ?
All you need to know about Nidhi Company
Nidhi company registration is the process of incorporating a type of NBFC called Nidhi.This NBFC is also known as Mutual Benefit Finance Company. Starting a Nidhi company is one of the best options for people who want to commence a finance business with low capital investment.
A Nidhi company, also known as Nidhi Bank aims to cultivate the habit of savings and thrift amongst its members.Its main area of operation is borrowing and lending of funds.As per the rules,it can only make transactions with its registered members and within the permitted district of work.
The Nidhi Company is registered with the Ministry of Corporate Affairs and regulated by the Companies Act 2013. The registration process is comparatively easy in comparison to registration processes of other NBFCs.
In this NBFC, there are no eligibility criteria for a minimum qualification of Directors. Additionally, this category of NBFC does not require the approval of Reserve Bank of India for incorporation.It is mandatory that every Nidhi company has to end their name with “Nidhi Ltd.”
Flexible plans with no surprises
STARTER
₹ 32499/-
(All Inclusive)
- 7 Digital Signature Certificates
- 3 Director Identification Numbers
- Company Name Reservation
- Stamp Duty On INR 5 Lakh Authorized Capital
- Corporate Identification Number (CIN)
- MOA & AOA
- PAN & TAN
PREMIUM
₹ 43499/-
(All Inclusive)
- 7 Digital Signature Certificates
- 3 Director Identification Numbers
- Company Name Reservation
- Stamp Duty On INR 5 Lakh Authorized Capital
- Corporate Identification Number (CIN)
- MOA & AOA
- PAN & TAN
- GST Registration
- Trademark Application (1 application 1 class) (start ups, proprietorship & small business)
- 10 Copy Share Certificate
- Share Allotment for upto 200 shareholders
Add to Cart
Popular
ADVANCED
₹ 55499/-
(All Inclusive)
- 7 Digital Signature Certificates
- 3 Director Identification Numbers
- Company Name Reservation
- Stamp Duty On INR 5 Lakh Authorized Capital
- Corporate Identification Number (CIN)
- MOA & AOA
- PAN & TAN
- GST Registration
- Trademark Application (1 application 1 class) (start ups, proprietorship & small business)
- 10 Copy Share Certficate
- Share Allotment for upto 200 shareholders
- Company Seal
- 100 Letterhead
- 100 visiting card for 3 Director
Benefits of Registering a Private Limited Company
No Approval from RBI
Nidhi Company is outside the preview of Reserve Bank of India. It does not require a license from RBI to operate a loan business in India.
Separate Legal Entity
It has a separate legal entity as from its promoters and shareholders. Nidhi Company can acquire property on its name and also incur debts.
Limited Liability
The liability of directors and managers is limited as per The Companies Act 2013.
Perpetual Existence
It has a perpetual existence; it is not affected by death or departure of any one or all of its shareholders.
Ease of Management
Executing changes in Nidhi Company is more comfortable in comparison to other NBFCs
Credibility in market
The Ministry of Corporate affairs regulates Nidhi Companies. Hence, it is considered more credible as compared to other similar institutions controlled by state governments.
Documents Required For Nidhi Company
List of Documents
♦ Photograph of all the Directors
♦ PAN Card of all the Directors
♦ ID Proof of all the Directors (Driving License/Passport/Voter ID/Aadhar Card)
♦ Electricity Bill, or any other utility bill for the address proof of the Registered Office
♦ Copy of bank statement
♦ Email ID and mobile number
♦ Rent agreement on the name of the company (No Objection Letter (NOC) from the landlord with his/her consent to use the office as a registered office of a company must be submitted)
Minimum Requirement
Requirement before the Incorporation
♦ Minimum 7 shareholders
♦ Minimum 3 Directors
♦ The minimum capital requirement is of Rs. 5 lakhs
♦ DIN for all directors
Requirement after the Incorporation
♦ The minimum number of shareholders must be 200 at the end of the 1st year
♦ Net owned fund should be more than Rs. 10 lakhs
♦ Unencumbered deposits of not less than 10% of the outstanding deposits
♦ The ratio for net owned funds to deposit should be more than 1:20
Fill Simple Checklist
A Compliance Manager will get in touch with you to obtain your documents along with a simple checklist. You need to fill up that checklist and submit along with your documents for processing. Our expert team will verify documents and proceed with registration formalities. All throughout the process, your dedicated Compliance Manager will keep you updated on the progress of Company Registration.
Name Approval
Once you submit your documents along with Checklist, we will proceed with the application of your Digital Signature and subsequently name approval. You may give up to three names of your choice. Names should be unique and suggestive of Company’s business. We will proceed with name approval through a form called “RUN” as prescribed by MCA. Name approval is received usually 1-2 days.
Company Registration
Once a name is approved, we will draft MOA (Memorandum of association) and AOA (Articles of association). We will file incorporation documents with MCA through a form called “SPICe” along with subscription statement. Usually, MCA approves the forms within 2-3 days once filed and issues Incorporation Certificate with CIN. PAN & TAN are allotted alongside. You may then proceed to open your Company Bank Account.
FAQs On Nidhi Company
How many directors and shareholders are required in a Nidhi Company?
Total 3 Directors and 7 Shareholders are required to register Nidhi Company.
What are the requirements of a Nidhi company incorporation?
A Nidhi company is registered as a Public Limited Company. Hence, the requirements for incorporation of a Nidhi company covered a minimum of three Directors and Seven Shareholders. However, the MOA of a Nidhi company must state that the primary objective of the proposed company is to nurture and promote a habit of thriftiness and savings among its members, and accept deposits from or lend loans only to its members, for the mutual benefits of them.
How is NIdhi Company different from NBFC’s?
Both such entities are different on various levels. Nidhi is not regulated by RBI and Nidhi Company Registration requires a much smaller amount of capital as compared to Rs. 2 Crore paid capital requirement for NBFCs.
Who is the regulating authority of Nidhi Company?
Nidhi Company Registration, as well as regulation, is done by the Ministry of Corporate Affairs. All the activities are done as per the provisions of Nidhi Rules, 2014.
Is RBI approval is required to register Nidhi Company?
NO, RBI approval is not required for them. Business can be started as soon as Nidhi Company Registration process is completed.
Can Nidhi Company do micro finance business in India?
NO. Microfinance as the term specifies is small credit facility. It is a very famous business type in semi-urban and rural areas. However, in order to conduct microfinance business RBI approval is required and can only be done any large NBFCs.
Which Cities do you provide your services?
Don’t worry!! Our expert will help you to choose a best suitable plan for you. Get in touch with our team to get all your queries resolved. Write to us at contact@creatickconsulting.in or call us @ +91 8409671011
How does Nidhi Company uses fund/deposit procured by it?
The Company uses the funds in lending to the Shareholder/members only as per the Nidhi company rules. Nidhi Company lending is in the shape of small loans for business and microfinance.
Who can invest in a Nidhi Company?
Only shareholders/Members of the Nidhi Company who have a membership ID, can invest in the scheme. To be a member, you must be 18-years and above as per age proof and must be a citizen of India.
Can Nidhi Company advertise its activities?
No, as per Nidhi companies are not authorized to promote its activities through any kind of advertisement This is done because the main object of Nidhi is to promote the habit of thrift and saving habits among its member and not to solicit deposits through promotions to non-members.
Similarly, Nidhi Company is not authorized to remit any kind of brokerage or incentive for promotion or mobilization of deposits to members or granting loans.
Can Nidhi Company open a account with its member?
No. Nidhi Company is not authorized to open a current account with its members.
What types of loan cannot be issued by Nidhi Company?
Nidhi Company is not allowed to issue the following type of loans:
1. Personal Loans
2. Asset/ Vehicle finance
3. Microfinance
4. Hire-purchase